Enhanced Oil Resources Inc. Provides June Operations Update
HOUSTON, June 15, 2012 /PRNewswire/ - Enhanced Oil Resources Inc. (TSX-V: EOR) is pleased to provide the following update regarding the Company's operations for June.
As previously reported, the Company's primary goals for 2012 are to add production and reserves through infill drilling at the Milnesand oil field, located in Roosevelt County, New Mexico, to evaluate the Chaveroo oil field for potential infill drilling and to further advance our planning and permitting objectives for the approximate 41 mile CO2 pipeline connecting Kinder Morgan's Cortez CO2 pipeline to our Milnesand oil field by September 2015.
Oil production volumes for May averaged 375 bopd, a decrease of 19 bopd from April. The reduction in production volumes for May is due to the Crossroads 102 well being shut in for most of the month due to a down-hole failure. That well has been worked over and is expected to return to production in the next few days. As previously discussed, the Company had been waiting for the delivery of fit-for-purpose tools to attempt additional fishing operations at the Crossroads 303 well for a parted submersible pump. Fishing operations have commenced, however, as of this date we have been unsuccessful in retrieving the remainder of the submersible pump from the well. The Company is continuing to work on the 303 well and is optimistic that production can be re-established in due course.
At the Milnesand oil field, we are preparing for the arrival of Key Energy's drilling rig on the Milnesand #522 wellbore to begin a 1400-foot lateral into an offsetting 20-acre in-fill location. The arrival of the drilling rig will commence the previously announced 3 well horizontal drilling program, the first horizontal wells ever to be drilled in the field. We will provide updates as they become available.
At the Crossroads oil field, we have contracted with Dawson Geophysical to acquire the first ever 3-D seismic survey at that field and expect to commence that program in the third quarter of 2012, pending final permit approvals.
At the Chaveroo oil field we have received all well log information not previously owned and we have provided that data to external consultants to perform a field-wide log normalization project. We believe that this project is necessary to support the definition of additional oil reserves over our substantial leasehold position.
We continue the surveying and permitting of the Cortez to Milnesand CO2 pipeline. Survey work will be completed in the third quarter of 2012, with rights- of- way agreements being completed by the end of the year.
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. is an oil and gas development company, with a principal goal of increasing crude oil and natural gas production through enhanced oil recovery ("EOR") and infill drilling projects it is initiating in the Permian Basin on oil fields acquired by the Company in 2007 and 2008 for that purpose.
Certain statements contained herein are "forward-looking statements" and "forward-looking information" under applicable securities laws, including statements regarding beliefs, plans, expectations or intentions regarding the future relating to Enhanced Oil Resources Inc.'s operations, business prospects, expansion plans and strategies.
Forward-looking information typically contains statements with words such as "intends", "anticipate", "estimate", "expect", "potential", "could", "plan" or similar words suggesting future outcomes. Readers are cautioned not to place undue reliance on forward-looking statements because it is possible that expectations, predictions, forecasts, projections and other forms of forward-looking information will not be achieved. Forward-looking statements are based on the opinion and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Although Enhanced Oil Resources believes that the expectations reflected in such forward-looking statements are reasonable, Enhanced Oil Resources can give no assurance that such expectations will prove to be correct. Assumptions upon which such forward-looking statements are based include that the Company will be able to carry out its proposed activity for 2012, that there will be development of our oil reserves, that production increases from our oilfields will be added, that our infill program will commence as expected, that additional reserves will be identified in our fields from our resource studies, that our connecting pipeline activities and objectives will be achieved as expected or that our Crossroads 3-D seismic program will commence as expected. Readers should refer to Enhanced Oil Resources' current filings, which are available at www.sedar.com, for a detailed discussion of these factors, risks and uncertainties. The forward-looking statements or information contained in this news release are made as of the date hereof and Enhanced Oil Resources undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws or regulatory policies.
ON BEHALF OF THE BOARD OF DIRECTORS
Barry D Lasker, CEO
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